Discount Bank annual profit up 39%

Starting in 2018, Israel Discount Bank will distribute up to 15% of its net profit as a dividend.

Israel Discount Bank (TASE: DSCT) published strong 2017 results this morning. The bank, headed by Lilach Asher-Topilsky, posted a net profit of NIS 1,259 million for the year, which compares with a net profit of NIS 905 million in 2016, representing a rise of 39.1%.

The bank's return on equity was 8.4% last year, which compares with 6.6% in 2016. Net profit in the fourth quarter of 2017 was NIS 371 million, which compares with NIS 145 million in the fourth quarter of 2016, representing a rise of 155.9%. Return on equity was 10% in the fourth quarter of 2017, up from just 4.1% in the fourth quarter of 2016.

The bank's capital grew by 7.6% in 2017, to NIS 16.1 billion. Its tier-1 capital adequacy ratio is 10.0%.

In a joint statement with Discount Bank chairman Dr. Yossi Bachar, Asher-Topilsky said, "2017 was characterized by intense activity and by growth in our core business throughout the group. The results indicate further consolidation of the positive trends, of which the main ones are growth in revenue and control of expenses, as reflected in the substantial improvement in the efficiency ratio, which stands at 68.5%. The financial statements show continued growth in credit and deposits, and impressive growth in the capital base, which stands at over NIS 16 billion.

"In the light of the consistent improvement in the bank's business results and taking into account the fact that it has met capital targets over time, the board of directors has adopted a dividend distribution policy starting in 2018, the essence of which at this stage is a dividend of up to 15% of net profit."